Saturday, April 30 2005 10:46 Hrs (IST) - World Time -

Washington: Even as it lauded India for enacting the new Patent Law, saying it would consider actions that would "acknowledge" progress in the area, the United States has put India on its Priority Watch list, alleging protection of Intellectual Property (IP) in many areas remained 'weak'.

"India took a significant step to improve its patent protection regime this year with passage of a new Patent Amendment," acting US Trade Representative (USTR) Peter Allgeier said, adding the US was closely monitoring its implementation and would consider "actions that would acknowledge progress in this area".

However, the USTR said, "Protection of intellectual property in many areas remains weak due in part to inadequate laws and effective enforcement," adding "consequently, India will remain on these areas of Priority Watch List".

The US yesterday (Apr 29, 2005) released its annual 'Special 301' report on adequacy and effectiveness of intellectual property rights protection around the world.

Allgeier said India should "improve its IPR regime with respect to protecting undisclosed test data, against unfair commercial use for pharmaceutical and agricultural chemical products as well as copyrights, trademarks and patents".

The USTR claimed the new law "does not permit holders of patents that will issue from 'mailbox' obligations to enforce them with respect to generic copies that continue to be marketed on date that the patent is granted".

"The extent to which India's new patent legislation satisfies India's TRIPS commitments is still under review and will depend in part on its implementation," he said.

USTR alleged that copyright piracy was also "rampant" and that the American copyright industry estimates of lost sales from piracy in India of US motion pictures, sound recordings, music compositions and books totalled "approximately $500 million in 2004".

The trade representative also pointed to the issue of piracy in the optical media in the country. "India has not adopted an optical disc law to address optical media piracy and was also not a party to World Trade Organisation (WTO ) Internet treaties," he said.

"We understand, however, that India is in the process of discussing amendments to the Indian Copyright Act which would enable India to implement these treaties," he added.

Allgeier, who claimed that India's criminal IPR enforcement regime remained 'weak' in multiple areas, including border protection against counterfeit pirated goods, police action against pirates and in obtaining convictions, hoped the country would 'address' these issues thereby "strengthen the IPR regime".